Domino's branches - Feasibility Study

CLIENT’S NAME

Domino’s Pizza KSA

LOCATION

KSA

DURATION

Operational Feasibility Study

ABOUT CLIENT

The client is Domino’s Pizza KSA, specifically their delivery operations and branch network. Domino’s is a well known global pizza brand operating in Saudi Arabia through a franchise model led by Alamar Foods, managing hundreds of branches across key cities.

Domino’s KSA places strong emphasis on fast, reliable delivery service, maintaining high standards for quality, customer satisfaction, and operational excellence. They are continuously exploring innovative models to optimize delivery efficiency and drive growth in a competitive market.

Nature of the project

The scope included assessing the brand’s existing delivery network, identifying logistical inefficiencies, and proposing a centralized hub model to optimize delivery routes and driver allocation. Additionally, the project explored cost optimization opportunities, performance tracking frameworks, and digital workflow enhancements to create a more streamlined, data-driven, and scalable delivery system capable of supporting Domino’s growing market demand

CHALLENGES

Unique market structure: In Saudi Arabia, food delivery relies primarily on cars, not scooters, increasing both cost and delivery time.
Lack of existing models: No food delivery company had applied a hub-based system before; only logistics companies had similar setups.
On-ground nature: As a digital agency, conducting an operational on-ground feasibility study was a complex process.
High rental costs: Potential hub locations in Riyadh had extremely high rent, impacting financial feasibility.
Validation complexity: Required deep data collection on insurance, vehicle wear and tear, average rental prices, and delivery heatmaps

SOLUTIONS

In-depth Study: Conducted an in-depth visibility and validation study comparing multiple variables: Cars vs. Scooters vs. Electric Scooters, Traffic vs. No Traffic Zones, Accessibility Levels across Riyadh
Heatmap Creation: Created a heatmap of Riyadh showing peak traffic hours and average delivery times per vehicle type.
Rental Benchmarks: Gathered rental price benchmarks for garage and hub spaces across key Riyadh areas.
Cost Model: Built a cost model calculating total expenses (vehicle, fuel, insurance, drivers, maintenance).
Logistical Alternatives: Provided financial and logistical alternatives proving that a hub-based model would increase delivery time and costs making it financially invalid compared to optimizing the current car system or shifting toward scooters.

RESULTS

Hub Concept Validation: The hub concept was proven invalid after in-depth operational analysis.
Cost Savings: Recommended a direct delivery model that saved the client 13 million SAR in projected costs.
Efficiency Improvement: Reduced expected delivery time and fuel expenses by shifting focus to electric motorcycles.
Data-backed Insights: Provided data-backed insights that guided the future delivery expansion plan for Domino’s Saudi Arabia.
Flexible Model recommendation: Delivered a validated, data-driven recommendation to maintain a flexible delivery model using scooters/electric scooters instead of fixed hubs.
Scalability Roadmap: Offered an evidence-based operational roadmap for future scalability without heavy infrastructure costs.

STRATEGIC ANALYSIS

Our study leveraged deep operational analysis to evaluate the feasibility of a centralized distribution model for Domino's branches in KSA.

WE DIVIDED THE AUDIENCE INTO THESE KEY SEGMENTS

Vehicle Type Evaluation: Comparative analysis of Cars vs. Scooters vs. Electric Scooters to determine the most cost-effective and time-efficient delivery method.

Riyadh Traffic Mapping: Detailed analysis of traffic density and accessibility levels across key zones in Riyadh.

Conclusion

The visibility study demonstrated the significant potential for Domino’s KSA to redefine its delivery ecosystem through innovative, sustainable solutions. By introducing a hybrid model that integrates fuelefficient motorcycles and electric scooters, the brand can achieve faster delivery times, lower operational costs, and a reduced environmental footprint — all while maintaining its high standards of customer satisfaction. This transformation positions Domino’s not only as a leader in the food delivery sector but also as a forward-thinking brand setting new benchmarks for efficiency and sustainability in Saudi Arabia’s dynamic market